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When we talk about innovation, we often picture breakthrough inventions—things like the light bulb, the internet, or artificial intelligence. But what if the real secret behind the most successful companies wasn’t about creating something entirely new?
Peter Thiel argues that complex coordination—the ability to bring together many existing pieces in just the right way—is what truly separates world-changing businesses from everyone else.
Apple’s iPhone? Nothing in it was entirely new. Tesla? It didn’t invent the electric car. Yet both companies completely changed their industries.
So, what’s going on here? And how can entrepreneurs apply this idea to their own businesses?
Who is Peter Thiel?
Peter Thiel is one of Silicon Valley’s most influential figures. As a co-founder of PayPal, an early investor in Facebook, and the author of Zero to One, Thiel has shaped the way we think about innovation and entrepreneurship.
His insights into complex coordination offer a fresh perspective on what it takes to build something truly revolutionary.
Photo: Getty Images
What is Complex Coordination?
Thiel defines complex coordination as
“taking a lot of different pieces and getting them to work together in just the right way.”
“It’s complicated to get all the pieces together in just the right way.. This was on some level what really drove Apple as an innovative company in the last decade.”
Complex coordination isn’t about inventing something entirely new—it’s about combining existing elements in a way that creates something extraordinary.
Apple’s Greatest Innovation Wasn’t a Single Product
When Apple launched the iPhone in 2007, the world saw it as a game-changer. But if you break it down, none of its individual components were new:
Touchscreen technology? Already existed.
Mobile internet? Not new.
Apps? Been around for years.
So why was the iPhone so revolutionary? Because Apple combined all these elements perfectly, along with an extremely sophisticated supply chain, a tightly controlled software ecosystem, and a premium brand.
And once it was built, copying it was incredibly difficult. Samsung and other competitors spent years trying to catch up, but Apple had already locked in its customers with the App Store, iCloud, and an unmatched user experience.
It wasn’t about one breakthrough invention. It was about bringing everything together in just the right way.
Tesla’s Success Wasn’t Just About the Car
The first electric car was built in the 1800s. So why is Tesla the company that made it mainstream?
Because Tesla didn’t just build a car—it reinvented the entire system around it.
Instead of relying on traditional dealerships, Tesla sold directly to customers.
Instead of waiting for gas stations to install chargers, Tesla built its own Supercharger network.
Instead of designing cars like a traditional automaker, Tesla made software a core feature, allowing vehicles to improve over time with updates.
Individually, none of these were radical ideas. But putting them together in the right way? That’s what made Tesla unstoppable.
Lesson: Sometimes, the real innovation isn’t about inventing something new—it’s about putting the right pieces together in a way no one else has.
The Man Who Reinvented the Shopping Mall
If you think Apple and Tesla are unique cases, let’s talk about Victor Gruen, a man most people don’t know but who completely changed how we shop.
In the 1950s, American cities were expanding, but people had no real place to shop outside of downtown stores. Gruen didn’t invent retail, but he combined several elements in a way no one had before:
Climate-controlled buildings (comfortable all year).
Multiple stores under one roof (convenience).
Large parking lots (essential for suburban customers).
A mix of retail and entertainment (to keep people around longer).
The result? The modern shopping mall.
By coordinating all these factors into one cohesive system, Gruen built something so successful that malls became the dominant retail model for decades.
The funny part? He actually hated what malls became. His original vision was more community-focused, but his model was so powerful that it spread worldwide anyway.
How Entrepreneurs Can Use Complex Coordination
This concept of pulling together existing elements into something powerful is a huge opportunity for businesses today. Here’s how you can apply it:
1. Look for What’s Missing in an Industry
Tesla didn’t invent the electric car—it fixed the missing pieces (distribution, charging, software). What inefficiencies exist in your market?
2. Combine Technologies in a New Way
Apple didn’t create new hardware, but it perfectly integrated software, design, and manufacturing. Are there existing tools or ideas that could be combined for a better experience?
3. Build a System That’s Hard to Copy
Once Apple had the App Store, competitors couldn’t just make a better phone—they had to match an entire ecosystem. What can you build that locks in your customers?
Final Thought: The Best Ideas Are Already Out There
If you’re waiting for a groundbreaking, never-before-seen idea, you might be looking in the wrong place. The biggest opportunities often come from rearranging what already exists.
The iPhone. Tesla. The shopping mall.
All of them changed the world—not by inventing something entirely new, but by coordinating complexity in a way no one else had thought of.
So, what industry is waiting for you to put the right pieces together?
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